Day 35

Question 1

Characteristics of Monopolistic Competition:

Answer 1

1. Numerous firms with differentiated products
2. Ease of entry - few barriers
3. Firms exact some influence over price
4. Non-price competition is frequent and critical

MCQ-03438

Question 2

Equation: Price Elasticity of Demand

Answer 2

= % Change in Quantity Demanded ÷ % Change in Price

% Change = (Q2 - Q1) ÷ Q1

MCQ-03708

Question 3

Under Monopolistic Competition, strategic plans focus on:

Answer 3

• Maintaining Market Share
• Planning for enhanced product differentiation

MCQ-03485

Question 4

Define: Hashing

Answer 4

Involves mapping large quantities of data into a smaller table for the purpose of recovering data more rapidly

Note: Hashing and Asymmetric Encryption = Inked Pen & Paper contract

MCQ-15783

Question 5

According to COSO, what is included in the assess-and-report phase of an effective approach to monitoring internal controls?

Answer 5

Monitor SOD or it will not grow

Prioritize Findings

MCQ-04329

Question 6

Define: Residual Risk

Answer 6

The risk that remains after MGMT responds to risk

the purchase price of the hedge against foreign currency fluctuations

MCQ-06762

Question 7

What would cause competition to be an even stronger force impacting profitability?

Answer 7

1. Market is not growing fast
2. There are several equal sized firms
3. Customers don’t have strong brand preferences
4. The cost of exiting exceed the cost of continued operations
5. Some firms profit from making certain moves to increase market share
6. The various firms in the market use different strategic plans

MCQ-03585

Question 8

When is Demand elastic?

Answer 8

Demand is elastic if a decline in price (P) results in an increase in total revenue (TR)

MCQ-03722

Question 9

Define: Perfectly Inelastic

Answer 9

Perfectly Inelastic means the quantity demanded will not change when price changes

Inelastic < 1.0

MCQ-04034

Question 10

The competitive model of supply and demand predicts that a surplus will arise when:

Answer 10

The minimum price is above the equilibrium price

MCQ-03670

Question 11

What economic indicators tend to occur due to economic activity?

Answer 11

Lagging Economic Indicators

Average duration of unemployment

MCQ-07816

Question 12

True or False: You will achieve economies of scale with a circular business combination

Answer 12

False

MCQ-04579

Question 13

Under Monopoly, strategic plans focus on:

Answer 13

Profitability from production levels that maximize profits

MCQ-03489

Question 14

Characteristics of Oligopoly Market Conditions:

Answer 14

1. Few firms in mkt
2. Significant barriers to entry
3. Differentiated products
4. Fixed (or semi-fixed) prices
5. Kinked demand curves

MCQ-03445

Question 15

Global companies that operate in foreign countries face what type of risk?

Answer 15

Country Risk and it encompasses:
- Political risk
- Economic risk
- Transfer risk
- Sovereign risk
- Exchange rate risk

Risks are associated with doing business in foreign countries

MCQ-08365